Putney Vale residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Putney Vale with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Putney Vale can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Putney Vale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew was the the leasehold proprietor of a high value flat in Putney Vale on the market with a lease of fraction over 59 years left. Matthew informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mr Tommy Gray moved into a one bedroom apartment in Putney Vale in June 2012. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparative premises in Putney Vale with an extended lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced monthly. The lease end date was on 18 April 2078. Having 52 years remaining we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
An example of a Freehold Enfranchisement case for a Putney Vale flat is 158 West Hill in November 2010. the Tribunal held that the premium to be paid for the freehold reversion should be £99,650 This case related to 7 flats. The unexpired term as at the valuation date was 75.88 years.